Developing nations open to locating Loss and Damage Fund in World Bank

Developing countries have indicated that they are agreeable to locating the Loss and Damage (L&D) Fund in the World Bank but for a pre-determined interim period following which it will become an independent entity - a significant change from their earlier position and one which could accelerate the creation of the fund.

- Jayashree Nandi

The compromise offer was made by developing country parties to kickstart the L&D fund in view of an increase in severe weather events, many of which are ravaging the economies of least developed, vulnerable and developing economies.

Sonam Phuntsho Wangdi, member of the L&D Transitional Committee representing least developed countries, small islands, the Caribbean, Asia Pacific and Africa said they have an open mind on the location of the fund and their option is to have World Bank as the interim location for a predetermined period with an exit strategy thereafter. The L&D facility will have an independent legal personality after exiting World Bank, he said.

"Loss and damage" is a general term used in UN climate negotiations to refer to the consequences of climate change that go beyond what people can adapt to, or when options exist but a community doesn't have the resources to access or utilise them. The operationalising of the Loss and Damage Facility was discussed at the fifth meeting of the Transitional Committee being held in Abu Dhabi on Friday.